GBP/USD is traded at the 1.3664 level above today's low of 1.3641. The bias is still bearish, so the pair may hit fresh new lows if the Dollar Index resumes its upside journey. The price moves somehow sideways in the short term which could represent a distribution.
The GBP/USD pair is under pressure as the US data have come in better than expected while the UK economic figures were published mixed. The United Kingdom CBI Industrial Order Expectations was reported at 22 points above 15 points expected, while the Public Sector Net Borrowing increased from 6.2B to 19.8B. It was reported higher versus the 14.5B estimate.
On the other hand, the US Housing Starts increased to 1.62M exceeding the 1.55M estimate. The Current Account was reported at -190B above -193B forecasts. At the same time, the Building Permits rose to 1.73M while specialists expected a drop from 1.63M to 1.60M.
GBP/USD distribution
GBP/USD plunged below the Descending Pitchfork's median line (ml). It has found temporary support and now it moves sideways. Stabilizing below 1.3662 may signal further downside movement.
The pressure is still high as long as it stays below the median line (ml). The lower median line (lml), 1.3602, and the S2 (1.3596) are seen as potential downside obstacles. From the technical point of view, coming back and stabilizing above the Descending Pitchfork's median line (ml) may invalidate further downside movement.
GBP/USD forecast
Dropping and closing below 1.3640 yesterday's low could announce further declines towards 1.3602. The pair may go lower as long as it stays below the median line (ml). A larger downside movement could be activated by a valid break below 1.3602.
